06 Mar 2009 05:03:19
Invest in green and growing sectors, government urged
Investment into green technologies and other market sectors that look set to grow was recommended to the government instead of offering bail-outs to industries.
The National Endowment for Science, Technology and the Arts (NESTA) has called upon the government to make a "creative intervention" in the economy instead of merely a "corrective" one.
Jonathan Kestenbaum, NESTA chief executive officer, said that past industrial bailouts failed because they focused on existing industries instead of encouraging new ones.
He added: "Government has to make the switch from bailing-out industries, to investing in growth sectors where future market demand is strong. If we fail to do so, we will be paying the price for many more years to come.
"This is not a case of spending new money, but of ensuring that existing money is spent consistently with a focused industrial strategy."
The organisation claims that the green economy will grow by seven per cent annually.
Other sectors which should be supported to place the UK on the best footing to emerge from the economic downturn are creative industries and healthcare, including services for an ageing society and biotechnology.
Tony Blair recently urged leaders to tackle climate change at the same time as the current global financial difficulties.http://www.nesta.org.uk/